Anyone buy trade stocks?

Discussion in 'General Discussion' started by Garthilk, Aug 27, 2011.

  1. Garthilk General Badass

    I opened up a trading account this week, figured I might as well jump in since interest rates are so crappy that the growth or even lack of growth in the market is better than sitting in the bank. Anyone else trade much?
     
  2. You gonna try your hand at day trading?

    A friend of mine when we closed Circuit City sold all his shares out and started day trading with his at that time 12k worth of stock. Over a 7 month time he turned that 12k into 70k. Day trading is where the money is if you know what you are doing. I've always wanted to try it I just haven't had the money.
     
  3. Garthilk General Badass

    I don't think I've got enough money to day trade, though I'm trying to pick a few stocks that are underpriced but have good short and potential long returns. If I had money I'd buy apple, sell at like 430 and make a shit load of money, but I don't have enough money to make apple worth it. The gains aren't going to be enough to make money fast with such a small capital like I've got. I'm starting with 7k basically.

    I think companies despite ther economic realities like Bank of America and Citibank are undervalied given their historical data. I purchased BAC and C last week and so far, up a dollar, which is great when you've got 500 shares, vs owning apple, yeah it goes up 20 bucks, but I can only afford like 10 share.
     
  4. Gaunsaku Chill Dude

    I trade. Not enough to be considered a day trader, but I've gotten a 30% return minimum every year I've had money in the market and have picked my share of "winning" stocks :)

    You can day trade with as little as $1000. You just need to determine what kind of day trader you want to be and how much risk you're willing to take. Obviously, the greater the risk, the greater the reward. I bought stock at $25, sold it at 80, bought it again at 40, sold it again at 110. About 1.5 years later in the great lameness of 2 market crashes ago (dow under 10k), I lost about $35k in the span of 2 weeks.

    So my advice is to learn what kind of trader you are and ABSOLUTELY NEVER GET ATTACHED TO YOUR MONEY. If you are emotionally invested, you're fucked from the start. And if you're not emotionally invested, be ok with losing it all, because you will take a huge hit at somepoint in your trading career :)
     
  5. Or... You can just invest in games from the start of development and then just sell once the game releases. Do that for all the hyped games and lol @ free monies. No?
     
  6. Garthilk General Badass

    I thought about this I figure ea and activation have the prospect of making in major sales with bf3, elder scrolls 3, swtor, me3, diablo 3, but I think their volatility isn't high enough to earn me high enough profits even though I am bullish about them, if something happens to their stock and it dumps for some crazy reason I'd consider picking them up.
     
  7. Garthilk General Badass

    Considering stocks are down this august there anything you just picked up recently or is down right now you're bullish on?
     
  8. Likort Destroyer of Forum Trolls

    morrowind?
     
  9. See as gaun said, you have to determine what kind of trader you want to be. My buddy even thought he had 12k to start was messing with the penny stocks, the dollar stocks, those would move a few cents and he would sell. But with a few thousand of one penny stock you can make a couple hundred bucks in a few hours, or loose it if you don't do your research. He then advanced to the sure thing dollar stocks and then went from there, he was trading the 10$, 20$ 50$ then 100$ stocks but all one after the other. once you get your confidence up and you know what you are doing, you know where to look you should be good.
     
  10. Gaunsaku Chill Dude

    Long term, Bank of America and Apple are good buys. Short-mid term, Baidu and Amazon.... both have high P/E ratios so there is more risk and volatility, but also greater reward.

    Or if you're feeling like a lucky punk, check out some of the energy stocks, especially energy stocks in China and Brazil :)

    Most everything I've looked at from an investment standpoint involves companies I am familiar with. So, if you're like me, you look at technology companies and see who's coming out with what, product roadmaps, follow the general market trends like job and housing data. With the hurrican hitting, insurance stocks are decent short sell because they'll be paying out millions.
     
  11. thorizdin Administrator

    BoA I'd agree with not so much on Apple. They're highly overvalued IMO right now and while it may take a year or even two they're earnings are set to plummet.
     
  12. Palebrew Inactive Elder

    I don't know I think BofA is artificially inflated right now and Buffett is going to aggressively take them over and liquidate the bank....in fact I would be scared to get into stocks right now at all, usually I have some picks that end p doing great but I think it's going to tumble before we get back on track...(think previous bubbles and unbalanced money distribution)
     
  13. Tabaal Lord

    I usually compare daytrading as going to the casino and placing money on either red or black.

    Though as opposed to the casino, there is a slightly larger chance of winning, since there is no "0" as on the roulette table - either you win, or you loose.

    As a quick indication of this - when i worked for Saxo Bank (a bank where most of its clients are daytraders, or wannabe daytraders) - around 90% of all new clients, would have lost all the money deposited within the first 3 months.


    Btw, if you plan on being a day trader - you WILL need the same equipment as a professional brooker has - meaning expensive subscriptions to Reuters, or bloomberg etc. in order to have realtime pricing, and valuation of the stocks.
     
  14. Tabaal Lord

    Correction - never get attatched to a certain stock.

    Alot of people have a tendency to want to make back lost on money on the stock that cost them the money, thereby hanging on to a stock, where the loss should just have been finalized.
    Something like "If i dont sell it, then i havent lost any money"
     
  15. Tabaal Lord

    If you only have 7k to trade with, and you dont plan on daytrading, but your intention is just to get a better return than interest, or bonds - i would suggest a mutual fund.

    buying for less than 5k into a stock means the % loss due to fees is way to high - since most banks have a minimum fee, and a % based fee on trading.

    This means that you wont be able to spread your risk, by investing in multiple stocks, or over multiple risk-areas - whereas with a mutual fund, you get the spread automatically - true, you pay a % fee for the administration of it, but for a "non-professional" its usually the best choice.

    I would go for an index based mutual fund though, since the "active" ones tend to underperform by alot.
     
  16. Garthilk General Badass

    Tabaal,

    I think you're right in many aspects. Picking just a few stocks with such a little amount of money is equivilent to going to Vegas. But I'm also okay with gambling. I think the odds are slightly better given the track record of many companies.

    I'm not worried about trading fees so much as I get 30 free trades a month, because I have enough assets in my Bank of America account to get free trades with Merrill Lynch.

    I don't like mutual funds much because they lack the volitility that I'm looking for. I'm okay losing 3k in a day, because I made a bad choice. But I'm also excited that the potential for making 3k in 3 months is also there.

    And you're right, don't get attached to a stock. A loser is a loser in many cases, except when a stock is being acted on by temporary external forces. IE, the stock market is not logical.

    My approach at this point is that I'm going to buy and trade stocks. I'm going to lose money. I'm going to try and pick stocks that I belive are going up in the short term. I'm going to a small degree use a combination of dollar cost averaging and hedging to trade from here on out.

    In terms of resources, for the traders. What does everyone use, any specific sites, any specific anyalsts they listen to, specific resources for certain topics?
     
  17. Gaunsaku Chill Dude

    Mutual funds are an option, for sure. Any of a variety of index funds are out there, I just don't know much about them because they're too bland for me :)

    Tabaal is correct in the whole "if I haven't sold then I haven't lost any money" mentality being stupid. Learn to cut losses.

    And Thor, I agree that Apple will plummet at some point, but I think between the iphone 5 and ipad 3 and lack of competition in the sector from anyone makes them a decent growth bet for the next 2-3 quarters at least. The iphone has no competition until Nokia fully rolls out their windows phone models, but that's gonna be next year, the ipad has no competition unless you count the $99 HP pad firesale (and no one will make a tablet for $99 anymore), and windows 8 isn't gonna be out for awhile. I think their margin will remain high while costs come down. Plus, if the iphone 5 is LTE enabled, it will snag even more customers from Verizon.

    But you're right, I do expect them to plummet at some point... I just don't think that's in the next 3-6 months. I could be wrong, though :)
     
  18. Tabaal Lord

    If youre in it to "risk it all, chasing a quick reward" - then gearing your investment might be an option for you - also trading options.

    You can eliminate some of the risk, by buying 1 stock, and shorting another - thereby youre playing on the stock youre buying, performing better than the stock youre shorting - negating the "market risk".

    Ie. if the market drops 20%, then you loose 20% on the stock you bought, and gain 20% on the stop you shorted. 20%-20% = 0.

    the market tools you need will be a netbank, that has "real time" prices - most of these also give you access to various data streams - but bear in mind, that once you recieve the news, the market has allready moved in response.
     
  19. thorizdin Administrator

    ~57% of all smart phones in the US run Android, not iOS and that is only going to go up. Its not that iPhone has one major competitor but rather that it has hundreds.

    The pad market is better for Apple, at least until Amazon jumps in with a subsidized Android 3.0 pad. What HP's failed pad showed more than anything else is that the products out there do what consumers want, they are simply too expensive. Amazon, being primarily a content company, is looking to sell a pad for "hundreds" less and yes that will have a major effect on Apple's revenue as soon as it comes out.


    Apple, as it has for its entire history, is quite content being the more expensive niche alternative as such it will go back to being a boutique choice over the next 2-3 years.

    http://www.pcmag.com/article2/0,2817,2392005,00.asp

    http://www.slashgear.com/android-leads-mobile-sales-as-symbian-takes-a-dip-worldwide-11171166/
     
  20. Garthilk General Badass

    Regarding shorting,

    It seems like it's much more difficult to pick a stock to short than it is to pick a stock that will go up for me at least. I can pick winners as easy as the next guy, but picking stocks to short, I'm not sure where to begin.
     

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